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TMI BlogIncome deemed to accrue or arise in India.X X X X Extracts X X X X X X X X Extracts X X X X ..... y debt incurred, or moneys borrowed and used, for- (A) a business or profession carried on by that person outside India; or (B) making or earning any income from any source outside India; or (iii) a non-resident, if it is in respect of any debt incurred, or moneys borrowed and used, for the purposes of a business or profession carried on by that non-resident in India, shall be deemed to accrue or arise in India; (b) for the purposes of clause (a)(iii),-- (i) any interest payable by the permanent establishment in India of a non-resident person engaged in the business of banking, to the head office or any other permanent establishment or any other part of such non-resident outside India shall be deemed to accrue or arise in India; (ii) shall be chargeable to tax in addition to any income attributable to the permanent establishment in India; and (iii) the permanent establishment in India shall-- (A) be deemed to be a person separate from, and independent of, the non-resident person of which it is a permanent establishment; and (B) the provisions of this Act relating to computation of total income, determination of tax and collection and recovery shall apply, accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough which that right is transferred; (ii) royalty includes consideration in respect of any right, property or information, whether or not-- (A) the possession or control of that right, property or information is with the payer; (B) that right, property or information is used directly by the payer; (C) the location of that right, property or information is in India; (iii) the expression "process" includes transmission by satellite (including up-linking, amplification, conversion for down-linking of any signal), cable, optic fibre or by any other similar technology, whether or not that process is secret; (iv) the expression "computer software" means any computer programme recorded on any disc, tape, perforated media or other information storage device and includes any such programme or any customised electronic data. (7)(a) Income by way of fees for technical services payable by-- (i) the Government; (ii) a resident, except where it is payable for- (A) a business or profession carried on by the resident outside India; or (B) making or earning any income from any source outside India; or (iii) a non-resident, if it is payable in respect of services utilised f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent; or (III) are subject to the same common control as the principal non-resident, and such person shall not be deemed as having an independent status; (c) in of clause (a), a business carried out in India shall not include any business activity or operations-- (i) carried out through a broker, general commission agent or any other agent having an independent status, if such broker, general commission agent or any other agent is acting in the ordinary course of his business; (ii) which are confined to-- (A) the purchase of goods in India for the purposes of export out of India; or (B) the collection of news and views in India for transmission out of India, in the case of a person who is engaged in the business of running a news agency or of publishing newspapers, magazines or journals; or (C) the display of uncut and unassorted diamond in any special zone notified by the Central Government, in the case of a foreign company engaged in the business of mining of diamonds; or (D) the shooting of any cinematographic film in India, in the case of that person being-- (I) an individual who is not an Indian citizen; or (II) a firm which does not have a partner who is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to in clause (a), shall be deemed to derive its value substantially from the assets (whether tangible or intangible) located in India, if on the specified date, the value of such assets,-- (i) exceeds the amount of ten crore rupees; and (ii) represents at least 50% of the value of all the assets owned by the company or entity, as the case may be; (c) the value of an asset shall be the fair market value on the specified date of such asset without reduction of liabilities, if any, in respect of the asset, determined in the manner, as prescribed; (d) the expression "specified date" in clause (c) means- (i) the date on which the accounting period of the company or, as the case may be, the entity ends preceding the date of transfer of a share or an interest; or (ii) the date of transfer, if the book value of the assets of the company or, as the case may be, the entity on the date of transfer exceeds the book value of the assets as on the date referred to in sub-clause (i), by 15%; (e) the expression "accounting period" in clause (d) means-- (i) each period of twelve months ending with the 31st March; (ii) each period of twelve months ending with a date other than t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transferor (whether individually or along with its associated enterprises), at any time in the twelve months preceding the date of transfer,-- (A) does not hold the right of management or control in relation to such company or the entity; and (B) does not hold voting power or share capital or interest exceeding 5%, of the total voting power or total share capital or total interest, as the case may be, of such company or entity; or (iii) if such company or entity indirectly owns the assets situated in India and the transferor (whether individually or along with its associated enterprises), at any time in the twelve months preceding the date of transfer,-- (A) does not hold the right of management or control in relation to such company or the entity; (B) does not hold any right in, or in relation to, such company or entity which would entitle it to the right of management or control in the company or entity which directly owns the assets situated in India; and (C) does not hold such percentage of voting power or share capital or interest in such company or entity which results in holding of (either individually or along with associated enterprises) a voting power or share ..... 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